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Along with these three, Tata Capital Housing Finance, Nirmal Bang Securities and others issued smaller papers.
“The HUDCO paper was likely presold, there were only three large bids which included LIC and EPFO, as this was a longer tenured paper. It is because of this that their rate was below 8%,” said a corporate bond dealer at a private firm.
As traders ramp up their expectations for European Central Bank interest rate hikes, yields on German government bonds are climbing steadily. This shift follows US inflation figures that were unexpectedly high, disrupting the bond market landscape. Meanwhile, global stock indices are witnessing a downturn, impacting the demand for traditionally safe assets.
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HUDCO was able to get a rate of 7.92% for their 10 year paper, while the Power Finance Corporation paper for 18 months and 5 years had rates of 8.21% and 8.05% respectively. The 10-year benchmark government bond yield rose 4 bps from its previous close to settle at 7.29% on Friday. While the yield has edged up from around 7.15% levels seen last week, it remains below the 7.50% high recorded in October, according to CCIL data.
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A relatively softer benchmark yield and expectations of a rate hike in December has prompted a rush of corporate bond issuances of the past few weeks. Tata Capital Housing Finance raised ₹753 crore, while Nirmal Bang Securities raised ₹50 crore. These two issuances, along with a few other smaller bonds takes the single day aggregate to over ₹10,000 crore.
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https://economictimes.indiatimes.com/markets/bonds/hudco-pfc-others-raise-over-rs-10000-crore-via-bond-sales/articleshow/135820938.cms
